Capital loss and capital gain question. (Stocks)

[John]

I have a Rakuten Securities account with the tax deduction setup automatically.

I need to withdraw some money.
I’m going to sell a stock I made a loss on.
Next year in January I’m going to sell a stock I made a gain on then repurchase it and put it into NISA

A) Will the loss and gain be adjusted automatically or do I need to do something else?
B) How long can it be carried over? I’ve read 3 years.
C) Does it make a difference if it’s in the same year or not? For example if it’s the following year do I need to make a tax adjustment myself at the tax office? And is that year from Jan-Dec?

Thank you in advance.

[beanhead]

A) No, you will need to submit a kakutei shinkoku, in this case in early 2026 since the gain you want to offset will happen in 2025.

C) Yes, it makes a difference.
If you sold some stocks and made a gain, and others and made a loss, in the same year and used the Tokutei account with tax withholding option, it would be automatically calculated by Rakuten, so nothing to do. It is because you plan to do the 2 transactions in different years that it becomes a little more complicated.
Year is calendar year, yes.

[John]

Thank you very much for answering. Much appreciated!

[beanhead]

Not sure about B). I think it is 3 years too, but I have never carried over a loss, so can't confirm. Don may be able to help. He is the tax guru.

[John]

Thank you. I appreciate the reply.

[John]

Will it still work out the tax if I receive one of the funds in yen and the other in USD?

[captainspoke]

Will it still work out the tax if I receive one of the funds in yen and the other in USD?

Since you mention dollars...

Is that holding (stock, fund, ETF, etc) in a domestic account here? If so, then I think the above comments hold true. But if not, and it's a foreign account, those losses cannot be carried over (as above)--they can only be used in the tax year in which they occur.

[John]

Yep, in my Japanese account. Thank you for the reply.